The Treasury dislikes hypothecated taxes, and the Tories once condemned the very notion of a "death tax".
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Though the Treasury is almost genetically sceptical of hypothecated taxes, the idea is popular among health officials and, more surprisingly, Conservative MPs.
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Last year the government allowed them to levy an additional 2% "precept", hypothecated to social care, every year for four years, a move that 95% of councils adopted in the first year.
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Various technocrats, including Nick Macpherson, a former permanent secretary at the Treasury, have given cautious backing to something akin to a hypothecated tax for the NHS, an idea normally unpopular with economists.
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When determining their budget arrangements, councils make a distinction between hypothecated funding and non-hypothecated funding. Consideration of all funding in general is referred to as gross revenue streams, while net revenue streams refers to funding from only non-hypothecated sources. Historically, central government retained the right to cap an increase in Council Tax, if it deemed the council to be increasing it too severely. Under the Cameron-Clegg coalition, this was changed.
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The Road Fund was a British Government fund designated to pay for the building and maintenance of the United Kingdom road network. Its income came originally from Vehicle Excise Duty, until that ceased to be hypothecated for roads use in 1936, and then from government grants. It was created by the Roads Act 1920 and Finance Act 1920, and was wound up in the Miscellaneous Financial Provisions Act 1955. The Road Fund is notable as one of the few beneficiaries of hypothecated taxation in British history, and is the root of a popular misconception that Vehicle Excise Duty (especially when referred to as road tax) is still hypothecated.
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On 25 July 2007 the Minister of Transport Annette King announced that from 1 July 2008 all fuel excise collected would be hypothecated to the National Land Transport Programme.
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1, p. 120. This occurs, for example, where the ship needs urgent repairs during the course of its voyage or some other emergency arises and it is not possible for the master to contact the owner to arrange funds, allowing the master to borrow money on the security of the ship or the cargo by executing a bond. Where the ship is hypothecated, the bond is called a bottomry bond. Where both the ship and its cargo are hypothecated, the relationship is called respondentia.
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He served his sentence in Burdur Prison until his release in 1985. Later, his ban of employment in state service was lifted, and the properties belonging to his children were released, which were hypothecated as security for his fine.
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Hypothecated taxes have a long history. One of the first examples of earmarking was ship money, the tax paid by English seaports used to finance the Royal Navy. Later, in the 20th century, the hypothecated tax began to be discussed by politicians in the United Kingdom. For example, the Vehicle Excise Duty from 1920 when earned revenues were used for the construction and maintenance of the roads, assigning 1p on the income tax directly to education in 1992, or giving £300 million per year from the revenues from taxes on the tobacco industry to help the fight against smoking-related diseases since 1999.
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A naked short sale occurs when a security is sold short without borrowing the security within a set time (for example, three days in the US.) This means that the buyer of such a short is buying the short-seller's promise to deliver a share, rather than buying the share itself. The short-seller's promise is known as a hypothecated share. When the holder of the underlying stock receives a dividend, the holder of the hypothecated share would receive an equal dividend from the short seller. Naked shorting has been made illegal except where allowed under limited circumstances by market makers.
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In the standardised definition of UBS the cost of the services is funded by revenues derived from income taxes, which are hypothecated to the delivery of the UBS. Most UBS services in societies around the world today are funded out of general government revenues, such as publicly funded healthcare.
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"Consolidated fund" or "consolidated revenue fund" is a term used in many states with political systems derived from the Westminster system to describe the main bank account of the government. General taxation is taxation paid into the consolidated fund for general spending, as opposed to hypothecated taxes earmarked for specific purposes.
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The railroad would pass through the southwest corner of the original town, with the depot located five blocks west of the square in Block 44 of Conkling's Addition. On 1 May 1870 the first train steamed into town. Disappointment quickly followed. The bonds were promptly hypothecated, that is, used as security to borrow money.
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The defaulters hypothecated stocks and produced fake warehouse receipts and siphoned the entire default money. Initially, it was projected that there were 13,000 trading clients affected by the NSEL crisis. The genuineness and entitlement of these 13,000 trading clients is questionable. The brokers have not shown the Know Your Customer (KYC) details of any of the clients.
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The hypothecated tax can be divided into three groups based on the main characteristics. The emphasis can be put on the final use of the revenues, on the vastness of the area financed from the money earned or on the type of the tax. Each group then has two subsections. In the first case, we distinguish between strong and weak hypothecation.
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Secondly, differentiation is made between wide and narrow hypothecation. When the tax revenues finance the entire public service such as the health care, it is described as wide hypothecation. Narrow hypothecation means that only a specific area such as nursery education is funded. The third level of splitting is based on the type of, and the reason for imposing, the tax that is hypothecated.
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This calls for very substantially increased investment in innovation in noncarbon energy sources in order to diversify energy supply technologies. The ultimate goal of doing this is to develop non-carbon energy supplies at unsubsidised costs less than those using fossil fuels. The Hartwell Paper advocates funding this work by low hypothecated (dedicated) carbon taxes. It opens discussion on how to channel such money productively.
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The amount of the tax was dependent on the size of the home and, as a hypothecated tax for public television, was similar in principle to the television licence systems in other countries. The corporation is a member of the international broadcasting community, belonging to the European Broadcasting Union (EBU), the Broadcasting Organisation of Non-Aligned Countries (BONAC) and the Commonwealth Broadcasting Association (CBA).
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An import or export tariff (also called customs duty or impost) is a charge for the movement of goods through a political border. Tariffs discourage trade, and they may be used by governments to protect domestic industries. A proportion of tariff revenues is often hypothecated to pay government to maintain a navy or border police. The classic ways of cheating a tariff are smuggling or declaring a false value of goods.
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The problem of ambiguity of hypothecation occurs in many countries all over the world. As mentioned before, revenues of hypothecated taxes are often used to finance health care or education because in these sectors the aggregate preference can be easily revealed. One of the most known cases of hypothecation in Europe is the National Insurance contribution in the United Kingdom. Money that is raised goes directly to the National Insurance Fund from which the benefits are paid.
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Thyagu returns home again after transferring back and is shocked to see his family members are out from his home. Meanwhile, Thyagu’s sister’s marriage has already happened with Selvi’s brother and she has given birth to a baby as well. Thyagu visits Selvi’s father and gives the dowry he requested. Thyagu sends Selvi out from his home angered by her activities. Thyagu’s home has been hypothecated to a bank and the bank officials come to seize the home for non-repayment of loan.
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In 1920, an excise duty was introduced that was specifically applied to motor vehicles; initially it was hypothecated (ring-fenced or earmarked) for road construction and paid directly into a special Road Fund. After 1937, this reservation of vehicle revenue for roads was ended, and instead the revenue was paid into the Consolidated Fund – the general pot of money held by government. Since then, maintenance of the UK road network has been funded out of general taxation, of which VED is a part.
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In January 2006, the Office for National Statistics (ONS) changed the classification of the licence fee from a service charge to a tax. Explaining the change the ONS said: "in line with the definition of a tax, the licence fee is a compulsory payment which is not paid solely for access to BBC services. A licence is required to receive ITV, Channel 4, Channel 5, satellite, or cable". A briefing paper from the House of Commons Library described the licence fee as a hypothecated tax (i.e.
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Strong hypothecation means that the revenues from the tax go only to financing the particular service and the service is financed only through the revenues from this tax. Strong hypothecation is thought to be appropriate for pure public goods where voters must reveal their consumption preferences. If at least one of the two conditions is not met, we say that the hypothecation is weak. This distinction is the most common as many of the arguments for and against hypothecated tax are based on it.
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As such, he crowned Maximilian King of Hungary, and performed the solemn obsequies (1563) over Ferdinand I. As Archbishop of Esztergom, Olahus' first care was to put order into the finances and property of the archdiocese. He enforced yet again the Jus Piseti, i.e. the right of supervision over the mint at Kremnica (Körmöcbánya), for which surveillance the archdiocese enjoyed a large revenue. At his own expense, he redeemed the hypothecated provostship of Turiec (Turóc), also the encumbered possessions of the Diocese of Nitra (Nyitra).
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The Victorian Health Promotion Foundation is a statutory authority in the Australian state of Victoria, originally funded by hypothecated taxation raised by the Victorian Tobacco Act 1987. It was the first health promotion body in the world to be funded by a tax on tobacco. Better known as VicHealth, the organisation has a mandate to promote good health for all Victorians. With a focus on promoting good health and preventing chronic disease, it leads and advocates for excellence in health-promoting policies and programs.
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As an economist, Cable considers Adam Smith and John Maynard Keynes to be his heroes, recommending Smith's The Wealth of Nations and Robert Skidelsky’s Life of John Maynard Keynes to novice economists. He has been a proponent of greater capital spending, or borrowing to invest, and has made the case for this several times during and after the 2010-2015 coalition government. Cable has called the demutualisation of building societies "one of the greatest acts of economic vandalism in modern times". Cable supports the continuation of the Liberal Democrat policy of a hypothecated 1p rise in income tax to pay for improved health and social care,Brexit may never happen – Sir Vince Cable BBC along with proposals for replacing national insurance taxes with a likewise hypothecated new NHS and social care tax . He has also voiced support for a wealth tax to raise £15 billion or the equivalent of “less than one-third of 1pc of household wealth, net of debt” which would be used to address “intergenerational inequality.” Cable has been critical of the National Living Wage (the UK system of minimum wage), arguing in 2015 that smaller businesses would struggle to pay employees higher rates.
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Amendments to the MRS are typically informed by a series of strategic plans prepared by the Department of Planning, Lands and Heritage. Detailed land use planning within the area of the MRS is undertaken by local governments and other statutory authorities which prepare one or more local planning schemes within their administrative boundaries. Local plannings schemes must be consistent with the MRS and require the approval of the WAPC. The acquisition of land reserved under the MRS is funded by a hypothecated land tax called the Metropolitan Region Improvement Tax.
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The arguments against earmarking come mostly from the traditional way of viewing the taxes where they were confined to compulsory, unrequited payments to the general government as defined by the OECD in 1988. Firstly, public spending should be determined by policies and not by the amount of the revenue raised. With earmarking, inappropriate funding levels may occur as the strong hypothecated tax implies the dependence of spending on the tax revenues and thus on the macroeconomic performance of the country. Secondly, the flexibility of fiscal policy and thus the ability to influence the economic situation is reduced when hypothecation is used.
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The Turkish Radio and Television Corporation (TRT; Turkish: Türkiye Radyo ve Televizyon Kurumu) is the national public broadcaster of Turkey, founded in 1964. Around 70% of TRT's funding comes from a tax levied on electricity bills and a license tax on television and radio receivers. As these are hypothecated taxes, as opposed to the money coming from general government funds, the principle is similar to that of the television licence levied in a number of other countries, such as the BBC in the United Kingdom. The rest of TRT's funding comes from government grants (around 20%), with the final 10% coming from advertising.
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Most developed countries have partially or fully publicly funded health systems. Most western industrial countries have a system of social insurance based on the principle of social solidarity that covers eligible people from bearing the direct burden of most health care expenditure, funded by taxation during their working life. Among countries with significant public funding of healthcare there are many different approaches to the funding and provision of medical services. Systems may be funded from general government revenues (as in Canada, India and the United Kingdom) or through a government social security system (as in Australia, France, Belgium, Japan and Germany) with a separate budget and hypothecated taxes or contributions.
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A cordon based charging scheme has also been running in the city centre of Oslo, Norway since 1990. However, this differs in some key respects from Smeed's scheme, as it relies on a system of 19 wireless AutoPASS-enabled entrypoints with toll booths, and it was not designed as a congestion charge. Instead it is a hypothecated tax or fund-raising mechanism to pay for new roads, in the first instance, and public transport more latterly. It was not until 2002 that the principle was re-adopted in Britain, with legislation passed to allow the first schemes to be implemented in Durham and then London, with consideration given to a national road pricing system.
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The effect of such a stipulation was well settled in Louisiana. In Nathan v. Lee, 2 Martin N.S. 32, the effect was decided to be that > the mortgagee is not bound to pursue a third possessor, but may have the > hypothecated property seized in via executina as if no change had taken > place in its possessors, because any alienation or transfer made in > violation of the pact de non alienando is ipso jure void, as it relates to > the creditor, and that this effect of the pact is not annulled by the > provisions of the Civil Code in relation to mortgages, and the rules laid > down for pursuing the action of mortgage. In Stanbrough v.
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The Crédit Foncier (English: landed credit) initially made loans to communes. The movement was initiated by Louis Wolowski and Count Xavier Branicki, and sanctioned by Emperor Napoléon III in 1852 in an attempt to modernize the medieval French banking system and expand French investment outside Europe. Its name became the “Banque Foncière of Paris.” Similar institutions at Nevers and Marseilles were amalgamated into one under the title of “Crédit Foncier de France.” The amount of the loan could not exceed half of the value of the property pledged or hypothecated, and that the repayment of the loan was by an annuity, which included the interest and part of the principal, terminable at a certain date.
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The same bill placed banknotes under the direct control of the bank, whereas previously it had been under a nominally independent Note Issue Board. Later reforms saw the establishment of a Rural Credits Department within the bank, the profits of which were partly hypothecated to agricultural research. In March 1925, cabinet decided to return Australia to the gold standard, which it had left during World War I. It delayed its announcement until the United Kingdom had decided it would do the same, which "disguised what was arguably Australia’s first explicit macroeconomic policy decision". In 1924, Bruce and Page established the Loan Council to coordinate public-sector borrowings between the state and federal governments.
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IATA Customs, Currency and Airport Tax regulations by country Ghana's Airport Passenger Service Charge, at GH₵200 (approximately US$100) has been reclassified as a charge, not a tax, after the government announced in March 2013 the charge would be 100% hypothecated towards funding airport infrastructure.Government of Ghana official website - Airport Passenger Service Charge The New Zealand government recoiled from a plan to follow Australia in imposing a departure tax. Cabinet papers show the government planned to implement a NZ$35 border charge in its May 2013 budget, but withdrew from the plan after the country’s Economic Development Ministry found the tax would have run counter to New Zealand’s tourism promotion efforts.Govt dumped departure tax plan, by Vernon Small. Stuff.co.
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The government of David Lloyd George introduced a hypothecated motor vehicle tax in 1920 to pay for the road network Churchill and ended by Chamberlain's government in 1937 Following the 1888 budget, two new vehicle duties were introduced – the locomotive duty and the trade cart duty (a general wheel-tax also announced in the same budget was abandoned). The locomotive duty was levied at £5 (equivalent to £ as of ), for each locomotive used on the public roads and the trade cart duty was introduced for all trade vehicles (including those which were mechanically powered) not subject to the existing carriage duty, with the exception of those used in agriculture and those weighing less than 10 cwt- imperial, at the rate of 5s (£0.25) per wheel.
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To avoid so heavy a discount, and prevent a further decline by throwing it on the market, a large amount of it was hypothecated as security for temporary loans. At length, in the course of the winter, the price fell below the rates at which hypothecations had been made, and sales became necessary. The result was a sacrifice of so large a sum (about $300,000) as suddenly to render the Company unable to pay the quarterly interest due on 1 April 1842. Their credit being thus destroyed, and their operations arrested, and there being a variety of claims which were liable to be prosecuted, the Company immediately placed its affairs in the hands of assignees, by whom its interests; were protected, and the Eastern division was kept in successful operation.
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The recovery and reconstruction of Heimaey was paid for by all Icelanders via a hypothecated sales tax, as well as through international aid totalling US$ 2.1 million primarily from Denmark but with substantial contributions from the United States and several international organisations. With the harbour improved by the new lava breakwater, the fishing industry regained its former vigour and the island today remains the most important fishing centre in the nation, as over a third of Iceland's total fish catch is from this harbour. By the end of the eruption, Eldfell stood about 220 metres (720 ft) above sea level. Since then, its height has dropped by 18 to 20 metres (60 to 65 feet), due to slumping and compacting of the unconsolidated gravelly tephra as well as wind erosion.
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When an investor asks a broker to purchase securities on margin, hypothecation can occur in two senses. First, the purchased assets can be hypothecated so that, if the investor fails to keep up credit repayments, the broker can sell some of the securities; the broker can also sell the securities if they drop in value and the investor fails to respond to a margin call. The second sense is that the original deposit the investor puts down for the margin account can itself be in the form of securities rather than a cash deposit, and again the securities belong to the investor but can be sold by the creditor in the case of a default. In both cases, unlike with consumer or business finance, the borrower does not typically have possession of the securities as they will be in accounts controlled by the broker, however, the borrower does still retain legal ownership.
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In the budget of 1909, the then Chancellor of the Exchequer, David Lloyd George announced that the roads system would be self-financing, and so from 1910 the proceeds of road vehicle excise duties were dedicated to fund the building and maintenance of the road system. Even during this period the majority of the cost of road building and improvement came from general and local taxation owing to the tax being too low for the upkeep of the roads. The Roads Act 1920 required councils to "register all new vehicles and to allocate a separate number to each vehicle" and "make provision for the collection and application of the excise duties on mechanically propelled vehicles and on carriages". The Finance Act 1920 introduced a "Duty on licences for mechanically propelled vehicles" which was to be hypothecated – that is, the revenue would be exclusively dedicated to a particular expenditure, namely the newly established Road Fund.
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In 1997, just after the formation of the new Labour Government, Jacobs was appointed General Secretary of the Fabian Society,Fabian Society the UK's longstanding left of centre think tank. Amongst other activities he established the Fabian Commission on Taxation and Citizenship, for which he wrote the report, Paying for Progress: A New Politics of Tax for Public Spending (Fabian Society 2000).Blair's biggest U-turn, The New Statesman, 27 November 2000 The report argued for a hypothecated income tax to fund the National Health Service, and was perceived as influencing Chancellor of the Exchequer Gordon Brown's 2002 Budget, which raised National Insurance contributions and earmarked the revenue for the NHS.Tax bills rise to boost NHS, BBC News 17 April 2002 Jacobs' other writing at the Fabians included the pamphlets Environmental Modernisation: The New Labour Agenda (Fabian Society, 1999),Environmental modernisation: the new Labour agenda, Michael Jacobs, 1999, Fabian pamphlet (391), Fabian Society and the report of the Fabian Commission on The Future of the Monarchy (Fabian Society 2003).Radical changes proposed for monarchy, BBC News, 15 July 2003 In January 2004 Jacobs was appointed a member of the Council of Economic Advisers at the UK Treasury, responsible for advising the Chancellor on environmental, health and public services policy and spending.
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